1. Request form to be completed with pertinent data when applying for employment. This may be done in person, by telephone, or on the Internet. 2. Statement of information form that is completed and signed by an individual to obtain insurance coverage. The prospective insured is required to undergo a medical examination. The information supplied on this form and the results of the medical examination assist the insurance company in making a decision whether to accept or reject the risk. The application is usually made part of the policy.
Insurance Encyclopedia
Application, Legal Status
An application usually is an offer, although, under some conditions. it is only an invitation to the Insurer to make an offer.
Appointed actuary
The person appointed to a company carrying out long-term business as required by the FSA. The main statutory role of the appointed actuary is to carry out regular valuations of the insurer’s reserves needed to meet future liabilities. He must also advise the board on actuarial matters, including the fair treatment of policyholders. The person appointed must hold a prescribed professional qualification. The FSA plans to change the role of the actuary and place more responsibility on directors. However, the FSA proposes a new required actuarial function headed by an individual to advise the directors, calculate the insurer’s liabilities and liaise closely with the appointed actuary who, like the individual, will require approved person status.
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An actuary appointed by an insurance company charged with documenting the liability reserve of an insurer.
Appointed adviser
A legal expenses insurances term meaning ‘the solicitor, accountant, counsel or other expert appointed under the terms and conditions of the policy to represent the insured’s interests.
Appointed representative (AR)
A firm that undertakes regulated activities as an agent for an authorised person and is therefore exempt from authorisation. An AR can act for one principal (single principal model) for all regulated business. An AR with multiple principals is allowed only one principal for their investment business, both packaged and non-packaged policies, in regard to business with private customers (or equivalent). In regard to non-investment insurance (general insurance and pure protection) ARS are not restricted as to number of principals (i.e. product providers, intermediary or network). The principal takes responsibility for the AR’s compliance with FSA rules. Multiple principals work together on issues potentially damaging to clients via a multiple principal agreement with one taking the ‘lead’ for customer complaints. When an individual becomes an AR in regard to investment products he also becomes a financial adviser. See APPOINTED PERSON REGULATIONS; APPOINTED REPRESENTATIVE ACTIVITIES; INTRODUCER APPOINTED REPRESENTATIVES.
Appointed representative activities
ARs are permitted to carry on the following regulated activities: arranging (bringing about) deals in relevant investments, including general insurance and pure protection; making arrangements with a view to the foregoing deals; giving advice on such deals; agreeing to carry on any of the regulated activities. General insurance ARs may also deal as agents in relation to a contract of general insurance and assist in the performance or administration of such a contract.
Appointed Representative Regulations
Full title: The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 (SI 2001/ 1217). They describe the business for which appointed representatives are exempt and set out the requirements that apply to contracts between authorised persons and appointed representative (www.hmso.gov.uk/si/si/ 2001/20011217.htm)
Appointment of health care agent
See: power of attorney and durable power of attorney for health care.
Apportionable annuity
A life annuity under which the annuity is payable up to the date of death of the annuitant, i.e. payment is made on a pro rata basis for the period between the last regular payment and the date of death. Under an annuity curtate, no account is taken of this period as the annuity terminates on the last payment date preceding death.
Apportionment
In workers’ compensation cases, the process of determining if some portion of an injured worker’s permanent disability is due to a cause other than the current injury. This is an estimate of the degree of either occupational or nonoccupational factors that may have contributed to the impairment. Apportionment applies only to permanent disability.
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The method of dividing a loss among insurers in the same proportions as their participation when two or more companies cover the same loss.
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The method of dividing a loss among multiple insurers that cover the same loss.
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A method of dividing a claim among more than one insurance company.